1. JOE WORKED 40 HOURS THIS WEEK. HE EARNS $15.75 PER HOUR
HOW MUCH MONEY DID JOE EARN THIS WEEK?
JOE WORKS FOR FORD’S CONSTRUCTION COMPANY
Gross pay is the amount of money you make before any deductions are taken out.

2. DEDUCTIONS DOES JOE GET TO TAKE ALL $630 HOME WITH HIM??
WHAT KINDS OF ITEMS MIGHT BE TAKEN OUT OF JOE’S CHECK?

3. POSSIBLE DEDUCTIONS TAKE OUT OF THE $630
FEDERAL INCOME TAX 15%
NC STATE INCOME TAX 7%
F.I.C.A. (Social Security) TAX 7.65%
HEALTH INSURANCE $25
RETIREMENT $37.80 (6%)
CALCULATE THE DEDUCTIONS THAT WILL BE TAKEN OUT OF JOE’S CHECK
FEDERAL INCOME TAX
STATE INCOME TAX
F.I.C.A. TAX
HEALTH INSURANCE
RETIREMENT

4. HOW MUCH MONEY WILL JOE ACTUALLY GET TO TAKE HOME??
NET PAY

5. IF JOE WORKS 45 HOURS THE NEXT WEEK, HE RECEIVES OVERTIME OR
TIME AND ½ PAY
Remember Joe’s regular pay is $15.75/hour
HOW DO WE CALCULATE HIS GROSS PAY FOR THIS WEEK?
Calculate his regular pay work hours (anything 40 or under)
Calculate his overtime pay by taking the number of hours overtime he worked X his regular pay X 1.5
Add his regular pay and his overtime pay together

6. FIGURE JOE’S NET PAY BASED ON THE FOLLOWING DEDUCTIONS: Remember, his Gross Pay is $748.13
FEDERAL INCOME TAX 15%
STATE INCOME TAX 7%
F.I.C.A. TAX 7.65%
HEALTH INSURANCE $25
RETIREMENT $44.89 (6%)
TOTAL AMOUNT OF DEDUCTIONS
JOE’S NET PAY??
(GROSS PAY – YOUR TOTAL DEDUCTIONS)